In part one, we saw a few ways how automating is a better approach over outsourcing when it comes to the Human Resource Management (HRM) process. We showed how even without significant resources or technical skills, organizations can implement the HRM best practices at their workplaces. In this post, we’ll look at some more compelling reasons to choose automation over outsourcing.
Complete control over the HRM function: If the HRM function is outsourced, the organization’s management team tends to have less control over the day-to-day operations. And with control, they also lose accountability. Not only can they not control the operations but they can also not control the outcomes.
They are completely dependent on their outsource service provider. With automation, they have complete control over every aspect of the HRM function and are completely accountable to their employees.
Apart from this, the provider is likely to have accounts of other organizations to manage as well. This potentially reduces the effort on yours, which would not occur in the case of automation.
Security and confidentiality: Any threat to, or breach of, data integrity, confidentiality, and security is not an option. Even more so in the case of HRM data as it has up-to-date records of employee personal information, payroll information, and health and medical data. In the case of outsourcing, as this information will be in the hands of a third-party, there is scope for a breach.
Of course, the same organization might have some apprehensions about storing their data on the cloud as in the case of SaaS applications but there is a workaround where they can host their data on private clouds for greater security.
Company culture: HRM is more than just managing payroll and administering benefits. HRM is an integral part of the company’s culture. If this function is outsourced, organizations run the risk of destroying, or at least, not maintaining, their culture.
As you can see, automating your HRM process using an online HR solution gives you more benefits than simply outsourcing it. So, automate using a cloud HR solution, today.